topic Re: my score will drop 100 points. in Credit Cards

my score will drop 100 points.

Anonymous — Sun, 07 Sep 2008 14:48:51 GMT

Because of a deed lien, my score will drop 100 points according to my lender.

I have no lates on any of my credit cards ( balance of under 10% of credit limit) and mortgages, including the mortgage that will get the deed in lieu. My score is 728, going down to 628. Will my credit card companies close my accounts, can I be proactive about this? Any help will be greatly appreciated.

usaims

Re: my score will drop 100 points.

Anonymous — Sun, 07 Sep 2008 14:52:58 GMT

What is a deed lien.

Re: my score will drop 100 points.

Anonymous — Sun, 07 Sep 2008 14:54:28 GMT

Sorry, I meant deed in lieu.

Re: my score will drop 100 points.

Anonymous — Sun, 07 Sep 2008 14:55:51 GMT

slickwithnomoney wrote:
Sorry, I meant deed in lieu.

Well what is that lol

Re: my score will drop 100 points.

Anonymous — Sun, 07 Sep 2008 15:07:19 GMT

it is quite possible to drop 50 to 150 points- as a this is a major derog and you had no lates.

How to keep your other lenders happy? Pay them off.

I am sure you already know a new mortgage is not going to be possible for 12 to 36 months without a significant down payment.

slickwithnomoney wrote:

Because of a deed lien, my score will drop 100 points according to my lender.

I have no lates on any of my credit cards ( balance of under 10% of credit limit) and mortgages, including the mortgage that will get the deed in lieu. My score is 728, going down to 628. Will my credit card companies close my accounts, can I be proactive about this? Any help will be greatly appreciated.

usaims

Re: my score will drop 100 points.

jmbfl — Sun, 07 Sep 2008 15:11:39 GMT

Deed in lieu of foreclosure.

Sounds like you want to eat your cake and keep it too. You have to chose which route you want to go: forclosure or deed in lieu, which is the outcome of a settlement to avoid foreclosure. Foreclosure is for sure a public record that will stay on you CBR's for many many years and effect your credit very adversely. I don't know about the deed in lieu. And lenders are notoriously stupid about how things effect FICO scores. I don't see you as having a lot of choice in the matter.

Re: my score will drop 100 points.

Anonymous — Sun, 07 Sep 2008 19:33:52 GMT

This was for an investment property; my bank is being real nice to me. I won't be in the market to buy a house for a long time; I'm quite happy in my primary home. No lates and I'm about under 10% balance on all my credit cards.

No one has answered my question when my credit card companies will see my score drop 100 points, will they close my accounts? Should I call them to be proactive?

Re: my score will drop 100 points.

jefftca925 — Sun, 07 Sep 2008 19:50:07 GMT

My brother is currently going through the same thing. He's trying to sell his rental property through a short sale to avoid foreclosure. His scores have tanked to around 600 because of this after having perfect credit for years. Luckily he hasn't had any AA from any of his CC issuers (has no AmEx cards) and has been paying cash for things of late to keep his nose clean. He's also paying off 2 CCs and will be clean very soon. It's probably the smart approach to this kind of problem. There are a lot of folks going through it right now.

And honestly, paying cash for things is a great way of getting your finances in check. I've been doing it now for 13 years or so and my lifestyle has not suffered. You just have to look at your spending in a more conservative way. And the nice thing is I also have a nice chunk of change in the bank.

Hope this helps.

Re: my score will drop 100 points.

Candice — Sun, 07 Sep 2008 21:12:33 GMT

@Anonymous wrote:
No one has answered my question when my credit card companies will see my score drop 100 points, will they close my accounts? Should I call them to be proactive?

There is no way to tell exactly what your CC companies will do. Maybe if you let us know who your CCCs are that will help get an answer. I personally do not know enough to tell you but maybe someone else can take a crack?

In terms of calling them...maybe, maybe not. Again, I'll let someone else handle that. My thought, though, would be they wouldn't know what your FICO is unless they did a pull, and if you don't ask for a CLI is there any reason they would do that?

Re: my score will drop 100 points.

TangMeister — Sun, 07 Sep 2008 21:14:07 GMT

@Anonymous wrote:
This was for an investment property; my bank is being real nice to me. I won't be in the market to buy a house for a long time; I'm quite happy in my primary home. No lates and I'm about under 10% balance on all my credit cards.

No one has answered my question when my credit card companies will see my score drop 100 points, will they close my accounts? Should I call them to be proactive?

Amex may very well put the smack down on you with a CLD and/or FR...especially if you charge that $2k for the transmission in the other thread you posted, along with this hitting your CRs.

As for banks being "real nice" to you: Banks aren't nice to people unless they're making money off of them, or getting huge deposits from them. They're doing this because they don't want to hold that property in this declining real estate market. Much better for them to work with you and get their money. In other words, they're not doing you a favor; this is purely a business decision in THEIR favor. Sorry, but just how it is. Take care of yourself and do what's best for you...they sure do what's best for them!

Good luck.

Re: my score will drop 100 points.

Anonymous — Sun, 07 Sep 2008 21:20:32 GMT

Yes- Expect 50 to 150 points

IMO- the best way to avoid AA is to not have balances-

You also need to look at the terms and conditions of your credors-

Many have change to only AA if you mess up with them-

What actions can your other creditors take?

Close account, Raise APR's, reduce cl's.

If you don't have balanes- what gain do any of these actions do to help the bank with their risks? NONE-

APR's don't matter if you PIF- and you almost alway have the option to close the account instead of paying the higher balance.

If the close the account- they have lost a revenue stream

Lower the CL- if you balances are low it won't hurt your score

Even in the 600's you are not going stright to heck-

You might actually do very well- how many people with 1 major derog have perfect payment history's? VERY few- you should be towards the top of this credit group and even if some of your creditors take some AA- you have been smart enough not to have all your credit eggs in one basket.

I have seen a domino effect on a persons credit - where the accounts get closed by the CCC's one by one- but even they did not have them all closed or all rate jack.

IMO- you will be fine and you will recover- if you have that great of a relationship with the bank- ask them to quit reporting it at all?

slickwithnomoney wrote:

This was for an investment property; my bank is being real nice to me. I won't be in the market to buy a house for a long time; I'm quite happy in my primary home. No lates and I'm about under 10% balance on all my credit cards.

No one has answered my question when my credit card companies will see my score drop 100 points, will they close my accounts? Should I call them to be proactive?

Re: my score will drop 100 points.

Uniqua — Mon, 08 Sep 2008 00:07:29 GMT

No one here can tell you if your creditors will close your accounts as no one here knows (unless they are one of your creditors). They are just giving you as much information as they can. Timothy's explanation should help you though. The actual drop in score is within a range and you won't actually know what it is until it drops. If your CCs stay open and you continue to PIF, you should see your scores begin to rise again in a few months.

Re: my score will drop 100 points.

Anonymous — Mon, 08 Sep 2008 13:00:13 GMT

No one can give you an answer because banks act wildly different from one another in this area. What I can offer, as a law of average, is that your PIF revolving accounts with a FICO score in the mid/lower 600s probably won't see you loose too much of your revolving credit purchasing power.